Search found 4250 matches

by MnD
Tue Jun 25, 2019 11:39 am
Forum: Personal Investments
Topic: Dodge & Cox DODIX
Replies: 6
Views: 545

Re: Dodge & Cox DODIX

I'd use it over Total Bond Market (comparison below) if that was the choice, as it addresses a lot of the issues with TBM.
But so does VBILX so I see little if anything to be gained if you have access to Vanguard Intermediate Investment Grade Bond.

Image
by MnD
Mon Jun 24, 2019 7:21 am
Forum: Investing - Theory, News & General
Topic: depleting accounts in retirement
Replies: 43
Views: 7720

Re: depleting accounts in retirement

It would depend on the relative balances of each account and your long-term tax situation. The mix should be based on attempting to minimize your tax obligations over a number of years. The solution may involving taking tax-deferred funds earlier to reduce RMDs down the road. I feel that leaving th...
by MnD
Sat Jun 22, 2019 7:41 pm
Forum: Personal Finance (Not Investing)
Topic: Frugal or cheap?
Replies: 104
Views: 7771

Re: Frugal or cheap?

Bought in 2011 when the market was down, on the water close to work. Like the location and others on our street around 2500 sq ft have sold in the 300-350k range recently so not outpricing the neighborhood Go for it given this additional info! Young, ample double income, pre-kids - this would be ex...
by MnD
Sat Jun 22, 2019 5:18 pm
Forum: Personal Investments
Topic: Advantage of T-bills?
Replies: 20
Views: 2160

Re: Advantage of T-bills?

You can mix/match and switch various flavors of money market funds, T-Bills of various maturities, CD's etc. all held within your regular brokerage account. I don't get the appeal of having all these dedicated single-purpose accounts spread out all over.
by MnD
Sat Jun 22, 2019 8:54 am
Forum: Investing - Theory, News & General
Topic: The problem in retirement we rarely discuss [what to do with stock funds]
Replies: 58
Views: 5657

Re: The problem in retirement we rarely discuss [what to do with stock funds]

I'm assuming the preferential LTCG rates aren't going to stick around forever and likewise with the step-up cost basis on death for heirs. These sorts of things mean absolutely nothing to the vast majority of households and they represent an "easy button" for increasing revenue. For example do you s...
by MnD
Sat Jun 22, 2019 8:39 am
Forum: Investing - Theory, News & General
Topic: The End of Passive Investing?
Replies: 55
Views: 4796

Re: The End of Passive Investing?

(I'm personally considering taking money out now in order to protect myself against future losses... but of course, without passive investing, there's nothing I can go to, as I don't trust active investing either!) “Far more money has been lost by investors preparing for corrections, or trying to a...
by MnD
Fri Jun 21, 2019 3:14 pm
Forum: Investing - Theory, News & General
Topic: The problem in retirement we rarely discuss [what to do with stock funds]
Replies: 58
Views: 5657

Re: The problem in retirement we rarely discuss [what to do with stock funds]

A portion of our retirement income is from taxable accounts containing all significantly appreciated funds. We pick the least favorite funds to sell first (index funds but typically first generation with higher expenses and less robust construction) and get a very favorable tax rate LTCG versus tax-...
by MnD
Wed Jun 19, 2019 7:55 am
Forum: Personal Finance (Not Investing)
Topic: How to estimate taxes during retirement?
Replies: 39
Views: 2619

Re: How to estimate taxes during retirement?

I use this. Simple but captures most nuances of different types of income.
Note the "add pension" button doesn't jump out at you if you have pension income to add.

https://smartasset.com/retirement/retirement-taxes
by MnD
Tue Jun 18, 2019 7:58 am
Forum: Investing - Theory, News & General
Topic: Should I abandon the Total International Stock Index Fund for greener pastures?
Replies: 110
Views: 9651

Re: Should I abandon the Total International Stock Index Fund for greener pastures?

Yes, you should abandon it in favor of Vanguard Total World Stock index fund and quit pretending you are Mr/Ms. Country allocation arbitrager extraordinaire. I've been global market cap since early 2002 when my work came out with an international index fund and have zero regrets and don't get worked...
by MnD
Mon Jun 17, 2019 9:46 pm
Forum: Personal Finance (Not Investing)
Topic: losing medicaid, needing to go on affordable care act
Replies: 13
Views: 1466

Re: losing medicaid, needing to go on affordable care act

I will be helping a friend of the family, who is very low income, navigate some insurance issues. She was on SSI and medicaid. She now turned 62, and is receiving social security survivor income of $20,000 annually. This pushes her just beyond medicaid eligibility and needs to go the ACA route. I a...
by MnD
Mon Jun 17, 2019 8:45 am
Forum: Investing - Theory, News & General
Topic: Why do large personal portfolios include bonds?
Replies: 168
Views: 12356

Re: Why do large personal portfolios include bonds?

Bonds are for mitigating shallow risk and for some, mitigating behavioral errors (panic selling at market bottoms).
Many people with "large" portfolios don't worry about shallow risk or making rookie investing errors.
by MnD
Sat Jun 15, 2019 8:08 am
Forum: Investing - Theory, News & General
Topic: How have your homes as investments done?
Replies: 213
Views: 21508

Re: How have your homes as investments done?

Buy and hold has been outstanding. Value up ~600% since 1991 purchase. Taxes and insurance combined are 0.60%. I credit luck and DW. She saw the potential in the mostly boarded up (at the time) authentic late 1800's Old Town within easy walking/biking distance as something that would revitalize our ...
by MnD
Sat Jun 15, 2019 7:36 am
Forum: Personal Finance (Not Investing)
Topic: Article on high deductible health plans - and the math
Replies: 118
Views: 8231

Re: Article on high deductible health plans - and the math

https://www.npr.org/sections/health-shots/2019/04/18/713887452/high-deductible-health-policies-linked-to-delayed-diagnosis-and-treatment Interestingly, women with high incomes who relied on high-deductible health plans were not immune to such delays — they experienced lags of 0.7 months for first br...
by MnD
Fri Jun 14, 2019 7:37 pm
Forum: Investing - Theory, News & General
Topic: How Bad was 2008, really?
Replies: 321
Views: 37337

Re: How Bad was 2008, really?

In a city with "mild" real estate impacts relative to others, both my next door neighbors and the house directly across from us was lost to foreclosure. Small bungalows a few blocks away, which now sell for 500-600k fixed up were bank auctioned at a low (2010) for around 100K. One of my cats was a s...
by MnD
Fri Jun 14, 2019 9:46 am
Forum: Investing - Theory, News & General
Topic: The Case Against ETFs
Replies: 193
Views: 8666

Re: The Case Against ETFs

We have a collection of accumulating CIT's, index and low cost active traditional mutual funds and ETF's. We don't suffer from the various behavioral errors and other maladies that the OP is convinced are ubiquitous to ETF's. If you are predisposed to being stupid with investments, any sort of posit...
by MnD
Thu Jun 13, 2019 8:36 am
Forum: Investing - Theory, News & General
Topic: The Automatic Enrollment Percentage in the TSP is Increasing
Replies: 1
Views: 258

Re: The Automatic Enrollment Percentage in the TSP is Increasing

https://www.fedsmith.com/2019/06/06/automatic-enrollment-percentage-tsp-increasing/ From the article: The Federal Retirement Thrift Investment Board (FRTIB), the agency that administers the Thrift Savings Plan (TSP), will increase the automatic enrollment percentage from 3% to 5% of pay for all par...
by MnD
Thu Jun 13, 2019 7:56 am
Forum: Personal Investments
Topic: Asset allocation for those in their late fifties
Replies: 35
Views: 3717

Re: Asset allocation for those in their late fifties

Both 56 and retired.
70/30 for life, global market cap for us/ex-US equity.
About 50% of our income comes from portfolio.
by MnD
Wed Jun 12, 2019 8:23 am
Forum: Personal Finance (Not Investing)
Topic: Personal Capital Cash
Replies: 22
Views: 2765

Re: Personal Capital Cash

My prediction is once they have your cash and all your contact information, they will market the heck out of you (phone/email/on-screen) to "put your cash to work" in their investment advisory service at 0.79% of assets management fee. Note that they pay a bit more on cash through this service for t...
by MnD
Tue Jun 11, 2019 1:43 pm
Forum: Personal Finance (Not Investing)
Topic: Is it Wise to Remove Escrow if Bank Allows it?
Replies: 87
Views: 5516

Re: Is it Wise to Remove Escrow if Bank Allows it?

I'd dump it. I don't recall being paid any interest back when on escrow, so that's a current 2.x% interest advantage to self-bank and self-pay. Prior to tax reform I was bunching property taxes every other year that allowed us to itemize every other year. Good luck doing that through your lender. Ou...
by MnD
Tue Jun 11, 2019 7:52 am
Forum: Personal Investments
Topic: intrigued and puzzled by Schwab offer to waive fees on Vanguard mutual fund purchases
Replies: 9
Views: 1232

Re: intrigued and puzzled by Schwab offer to waive fees on Vanguard mutual fund purchases

I asked my assigned rep at Schwab if he would do this and he agreed. It was in the context of moving funds in as cash from a 401-K rollover and needing to re-establish some fund positions that would normally have fees. Schwab doesn't charge fees on fund sales or to reinvest fund distributions and I'...
by MnD
Mon Jun 10, 2019 9:54 am
Forum: Personal Finance (Not Investing)
Topic: Costco Visa credit limit
Replies: 48
Views: 3045

Re: Costco Visa credit limit

Our Costco Citi is plenty high given our utilization, but interestingly is about 1/2 what Chase routinely assigns on their cards.
by MnD
Sun Jun 09, 2019 4:12 pm
Forum: Investing - Theory, News & General
Topic: Downsides of VPW?
Replies: 101
Views: 6812

Re: Downsides of VPW?

I think the biggest downside of VPW, for some people, is the potential for significant income changes from year to year. This can be an issue for folks who have always used a strict biweekly/monthly/yearly budget, and match cash flows of income/outgo. We've been on a highly variable, bonus based sa...
by MnD
Sat Jun 08, 2019 8:31 am
Forum: Personal Investments
Topic: Parents' Investment plan--ages 75, both with illness, contemplating retirement home
Replies: 13
Views: 2014

Re: Parents' Investment plan--ages 75, both with illness, contemplating retirement home

Change nothing with investments, currently 60/40. Very appropriate and no need to create tax liabilities. Income is more than sufficient and like others have said, a likely home sale could be added to cash/fixed income and move the overall portfolio needle closer to 50/50. Go Month to month on the r...
by MnD
Fri Jun 07, 2019 11:55 am
Forum: Investing - Theory, News & General
Topic: The logical fallacy behind "Bonds Are For Safety"
Replies: 248
Views: 15450

Re: The logical fallacy behind "Bonds Are For Safety"

Note that while a high bond allocation defends against the horrific "sequence of returns" risk it also introduces the even more damaging risk of not getting enough return to sustain income over time. All that increasing bond allocations did in the horrific 1966 retiree sequence of returns (when 4% ...
by MnD
Fri Jun 07, 2019 8:46 am
Forum: Personal Finance (Not Investing)
Topic: how to deal with people who are not living boglehead way of life
Replies: 45
Views: 2751

Re: how to deal with people who are not living boglehead way of life

I'm not crying over the fact that a big majority of households are perennially broke or nearly so regardless of income, while a fair number of those who aren't can't part with much or any of the big pile they've collected - the means have become the ends. The world is a pretty fun place for BH's tha...
by MnD
Wed Jun 05, 2019 11:47 pm
Forum: Personal Finance (Not Investing)
Topic: Should All Grandkids Be Treated as Equal Members of Same Class?
Replies: 104
Views: 8039

Re: Should All Grandkids Be Treated as Equal Members of Same Class?

The easiest solution is to not leave your grandchildren anything. Leave your children their appropriate shares and then the grandchildren will inherit when their parents pass. Bingo. Our kids get our money. What they do with it is their business. And if the terrible but unlikely situation of a chil...
by MnD
Sun Jun 02, 2019 11:17 am
Forum: Investing - Theory, News & General
Topic: 2% withdrawal rate
Replies: 182
Views: 12791

Re: 2% withdrawal rate

I really hope this board doesn't go down the road of giving the impression that ultra-low SWR's are best practices driven by wealth brags and misers for whom portfolio growth and feeding has become a lifetime addiction and the end rather than the means to a long, happy, healthy and active retiremen...
by MnD
Sun Jun 02, 2019 8:07 am
Forum: Investing - Theory, News & General
Topic: 2% withdrawal rate
Replies: 182
Views: 12791

Re: 2% withdrawal rate

Most people who contend they are on or will select a very low SWR qualify their statement with something like "at that level we have (will have) more income than while working because we saved (or sold business for) so gosh darn much". Hence it's meaningless and just a wealth brag. Taken to the extr...
by MnD
Sat Jun 01, 2019 3:09 pm
Forum: Personal Finance (Not Investing)
Topic: How long have you been unemployed?
Replies: 97
Views: 10886

Re: How long have you been unemployed?

Age 16 to 56, one period of about 2 weeks. I took a semester off from college to make more money for school bills and was working for a logger in Colorado since around June 1, making really good money and hoping to keep working until around Christmas. "Surprise surprise" we got snowed out about two ...
by MnD
Sat Jun 01, 2019 8:46 am
Forum: Personal Investments
Topic: Federal Gov't Early Retirement?
Replies: 52
Views: 4400

Re: Federal Gov't Early Retirement?

Also, there is no inflation adjustment to the FERS pension until you reach age 62. On the other hand, there is the FERS Supplement from age 56 - 62 that partially compensates the lack of inflation adjustment. Note also that if you retire in the year that you turn 55 or later, you can withdraw from ...
by MnD
Sat Jun 01, 2019 8:15 am
Forum: Personal Finance (Not Investing)
Topic: Resources for Federal Employees
Replies: 16
Views: 1131

Re: Resources for Federal Employees

National Association of Active and Retired Federal Employee Federal Benefits Institute https://www.narfe.org/federalbenefitsinstitute/ Especially the webinars both live and the recorded archive. https://www.narfe.org/federalbenefitsinstitute/?fa=webinars Access requires a membership to NARFE which I...
by MnD
Fri May 31, 2019 8:30 am
Forum: Investing - Theory, News & General
Topic: Does one need a bank account anymore?
Replies: 60
Views: 4292

Re: Does one need a bank account anymore?

A separate brick and mortar or separate online bank is unnecessary and adds additional complexity and potential expense. My adult kids couldn't imagine having either, and my only regret about dumping both types is that I didn't do it years earlier. Banking or banking-like services will continue to i...
by MnD
Fri May 31, 2019 7:16 am
Forum: Personal Finance (Not Investing)
Topic: Auto insurance - how much "medical expense benefits"?
Replies: 13
Views: 947

Re: Auto insurance - how much "medical expense benefits"?

We dropped it which required signing a special form with our insuror per our state law.
Separate chump-change level medical insurance coverage tied only to a certain event (car accident) falls under the category of nuisance insurance policies which we categorically avoid.
by MnD
Thu May 30, 2019 10:25 am
Forum: Personal Investments
Topic: TSP
Replies: 17
Views: 2236

Re: TSP

I'm 56, retired fed and am 70/30 stock/bonds in my overall portfolio which includes the TSP and 6 other accounts. 70% stock is global market cap tracking a fund like Total World Stock but by necessity consisting of several index funds both inside and outside the TSP. The 30% fixed income is 75% TSP ...
by MnD
Thu May 30, 2019 8:00 am
Forum: Personal Finance (Not Investing)
Topic: Estate planning - can I require only RMDs for inherited Roth IRA?
Replies: 46
Views: 2263

Re: Estate planning - can I require only RMDs for inherited Roth IRA?

You're trying to control/limit use of funds out as far as 4 generations (including your own) for what is currently $600K in Roth assets and 250K taxable (per current adult kid), neither of whom has even produced any kids of their own? Assuming your idea is possible, there are thousands of unknown sc...
by MnD
Wed May 29, 2019 9:19 pm
Forum: Investing - Theory, News & General
Topic: 2% withdrawal rate
Replies: 182
Views: 12791

Re: 2% withdrawal rate

I'm loving the SWR limbo! How low can we go???? Way less competition for my favorite beach house rentals, 1st class upgrades and preferred restaurant tables - so it's all good. Hopefully the adult kids won't cheap out on the nursing home they pick for you to goose their inheritance even further when...
by MnD
Tue May 28, 2019 10:23 am
Forum: Investing - Theory, News & General
Topic: How to retire early by targeting a low/zero balance at the end of life?
Replies: 48
Views: 5293

Re: How to retire early by targeting a low/zero balance at the end of life?

The next best thing I can think of is slowly letting the investment's value run out. Say one has a target to retire on $50,000/yr. He could choose to retire when achieving $60k but at a 5% withdrawal rate instead of the traditional 3-4%. Each year a paycut follows, creating some risk of it getting ...
by MnD
Tue May 28, 2019 10:10 am
Forum: Investing - Theory, News & General
Topic: Does rebalancing a global stock portfolio matter?
Replies: 12
Views: 703

Re: Does rebalancing a global stock portfolio matter?

I stopped considering geographic location of corporate HQ's as an asset class divisor a long time ago so no, "rebalancing" stocks for stocks doesn't make any sense. Likewise with maintaining some sort of individual allocation to tech, consumer discretionary, energy ect. and spending time and effort ...
by MnD
Mon May 27, 2019 1:22 pm
Forum: Personal Consumer Issues
Topic: All 10 Sprinkler zones won't turn on
Replies: 14
Views: 1240

Re: All 10 Sprinkler zones won't turn on

Thanks for the reply. I am going to check on that. The truth is I have 10 zone...however, I still haven't found 5 sprinkler valves. The previous home owners did not leave any informaiton. In the meanwhile, I will try on a new 12 zone timer,to see if there is a short within the timer itself (I am no...
by MnD
Sun May 26, 2019 3:24 pm
Forum: Personal Finance (Not Investing)
Topic: Completely freaked out about withdrawing from retirement accounts....
Replies: 75
Views: 10238

Re: completely freaked out about withdrawing from retirement accounts....

Median retirement savings for households age 55-64 is $16,000. Seems low. Even if that includes households with no savings it still seems low. What is the source of that stat? Per Motley Fool, quoting the Federal Reserve, as of an article written Jan 2015 and updated Oct 2016, the median savings of...
by MnD
Sun May 26, 2019 8:39 am
Forum: Investing - Theory, News & General
Topic: just a general comment about "too conservative" investors here
Replies: 151
Views: 14675

Re: just a general comment about "too conservative" investors here

This board has a few collective biases (IMO) but too being "too conservative" in asset allocation to equity relative to some overall norm is not one of them. I think most people don't have a good feel for what happens if you are 80%, 90% stock when we hit a bear market. Just see some of Nisiprius's...
by MnD
Sat May 25, 2019 8:15 am
Forum: Investing - Theory, News & General
Topic: just a general comment about "too conservative" investors here
Replies: 151
Views: 14675

Re: just a general comment about "too conservative" investors here

This board has a few collective biases (IMO) but too being "too conservative" in asset allocation to equity relative to some overall norm is not one of them. I think most people don't have a good feel for what happens if you are 80%, 90% stock when we hit a bear market. Just see some of Nisiprius's...
by MnD
Fri May 24, 2019 10:38 am
Forum: Personal Investments
Topic: Kids accounts: Vanguard Total World Stock
Replies: 36
Views: 3401

Re: Kids accounts: Vanguard Total World Stock

Thank you all for responses. I think for now I will go with VTWAX, we are talking about a relatively small amount per kid in the grand scheme for now. And the purchase minimum for VTWAX is $3,000 which is exactly the amount to be invested! :beer Great. Might as well get them started out without the...
by MnD
Thu May 23, 2019 6:48 pm
Forum: Investing - Theory, News & General
Topic: just a general comment about "too conservative" investors here
Replies: 151
Views: 14675

Re: just a general comment about "too conservative" investors here

This board has a few collective biases (IMO) but too being "too conservative" in asset allocation to equity relative to some overall norm is not one of them.
by MnD
Thu May 23, 2019 5:53 pm
Forum: Investing - Theory, News & General
Topic: Pre-RMD Retirement Sweet Spot - Accelerating IRA Withdrawals vs. Roth Conversion
Replies: 51
Views: 4049

Re: Pre-RMD Retirement Sweet Spot - Accelerating IRA Withdrawals vs. Roth Conversion

If I'm cruising along in retirement in my late 60's with an AGI around $100k and looking for that to jump to around $150k for the year I turn 70.5 and beyond, then that's not so optimal, taxwise. There are things I can do in my 60s, Without Going Overboard, that can reduce my age 70.5 AGI down to $...
by MnD
Thu May 23, 2019 2:05 pm
Forum: Personal Investments
Topic: Should I rollover my 401k from old megacorp to new megacorp?
Replies: 36
Views: 1951

Re: Should I rollover my 401k from old megacorp to new megacorp?

Nope. I can't think of one reason to choose a 401k over a rollover IRA. Main reason being that I don't trust the new company HR benefit department won't monkey around and change things up. I can think of two reasons easily. Asset protection in 401k plans is much stronger than in individual IRAs. If...
by MnD
Wed May 22, 2019 6:25 pm
Forum: Investing - Theory, News & General
Topic: We’ve won the game...but how do we stop playing?
Replies: 76
Views: 8203

Re: We’ve won the game...but how do we stop playing?

Several sectors likely don't diverge from the market overall, she likely has many multiples of what she needs including SS so 80/20 isn't any big concern and the tax issue is a very significant one. She's the smart investor in the room and grandkids should stay out of her financial business. The "wo...
by MnD
Wed May 22, 2019 9:18 am
Forum: Investing - Theory, News & General
Topic: Pre-RMD Retirement Sweet Spot - Accelerating IRA Withdrawals vs. Roth Conversion
Replies: 51
Views: 4049

Re: Pre-RMD Retirement Sweet Spot - Accelerating IRA Withdrawals vs. Roth Conversion

If you want to voluntarily realize deferred compensation now as ordinary income with all taxed at your highest current marginal tax rate or higher on the basis of speculation about future tax rates and coupled 2-person disparate longevity scenarios - that's fine. Lots of things can happen and my cr...
by MnD
Tue May 21, 2019 7:55 am
Forum: Investing - Theory, News & General
Topic: TSP modernization implementation date: 9/15/2019
Replies: 24
Views: 2706

Re: TSP modernization implementation date: 9/15/2019

I am watching this very closely. I don't like the Government putting any restrictions on the accessibility of my money. My ONLY issue should be paying the taxes, nothing else. I don' t like what I am seeing so far. They still put restrictions on your money, although it is better than it was. The cu...